We are undergoing our annual review of rates and charges that support the delivery of safe and reliable water to your home or business. This is part of the long-term planning effort we use to plan for projects (large and small) and to control costs.

Every year we update our 10-year outlook plan with the projects and services that will be necessary in the future. The proposed revenue increase reflects the reality that our normal cost of doing business—purchasing water, operating treatment plants and maintaining a complex distribution system—continues no matter how much water gets used.

As a public agency, the District does not earn a profit, but rather collects revenues to cover the cost of service and ensure that our customers continue to receive high quality water at the lowest cost possible, in an environmentally responsible manner.

We annually review the costs to maintain the water system in order to determine the adjustments needed to rates and charges. Revenue adjustments are only considered after completing a thorough review of all other financial tools available to us.

We continue to absorb the financial impacts of reduced water sales and increasing costs by limiting expenditures, implementing efficiencies, drawing down financial reserves, and refinancing debt.

The District’s goal is to set rates at a sufficient level to meet planned operations and continue replacing aging infrastructure.

Replace aging water infrastructure: Many of the facilities in operation have been providing water service for more than 80 years. The system is vast and sophisticated, and includes three water treatment plants, 40 storage reservoirs, 886 miles of pipeline. Reliable water service requires continued and increasing investment in the maintenance and replacement of this aging infrastructure.

The District is evaluating modernizing the 80-year-old Contra Costa Canal conveyance system to meet the long-term needs for safe, reliable water distribution. This increase helps us prepare for these inevitable costs.

Responsible financial planning: To offset the financial impacts of the multi-year drought, CCWD has also used its financial reserves to reduce the effect of rate adjustments to our customers. The proposed revenue increase will assist in rebuilding these safety nets and ensure long-term financial sustainability.

If approved by the Board of Directors, the new rates and charges would be effective February 1, 2018, with the exception of changes to Facility Reserve Charges (new connections), which would be effective April 1, 2018.

If the new rates and charges are not approved, we would have to evaluate planned projects and would have to delay work, which would impact water service for customers. We have taken a careful look at expenses and have trimmed budgets to control costs, but this additional revenue is needed to continue to provide reliable water service.

The District was able to recoup approximately 40,000 acre-feet of water (6 months of supply) into storage at the Los Vaqueros Reservoir in 2017, bringing storage levels to 96 percent capacity to prepare for the next dry period. The District completed the filling at the lowest cost source water possible, in one year and within one-year’s budget, rather than over two years as previously planned.

Staffing levels are lower than 20 years ago despite adding over $1 billion in new facilities.

The District restructured employee health benefits to reduce employer costs, with employee’s taking on a larger share of the expenses.

The District refinanced debt in 2017 to take advantage of low interest rates. Along with scheduled debt payments, principal obligations over the next 10 years were reduced by approximately $10 million, without extending the payment terms.